The first day of Romgaz share trading ended with a 15% increase of purchase price. According to Mediafax news agency, the liquidity of the first day was 92.5 million lei (20.7 million euros) and the volume of securities transferred was slightly the one from GDR transaction on the London Stock Exchange (LSE). The trading session started with a trading price of 35.85 lei/share, up by 19.5% over the offer price of 30 lei/share. Maximum of 35.95 lei/share was achieved immediately and during the trading session the price fluctuated between 33.86 lei/share and 35 lei/share.
“The first hour of trading was effervescent, and the price ranged of ROMGAZ titles was surprisingly narrow. The pressure came from both buyers and sellers, something that resulted in a volatility below expectations. Both markets had a different rate of evolution in terms of trading volumes, which is why I doubt that today is was tried an arbitration, but it is likely in the future to have such operations. […] I expect liquidity to be decreasing. Sure that there are chances that it (the price) to reach a new high, but I think the chances are higher that it does not deviate much from the price interval today,” Simon Tihon, broker for Prime Transaction, told Mediafax news agency.
After the first trading session, a ROMGAZ share was listed at 34.5 lei, 15% above the offer price. This is by 18.55% and by 21% over prices at which retail investors bought shares at a 5% and 3% discount. A significant share of transactions was carried out very quickly. The first 20 minutes of transaction turned out to be a time interval in which almost one-third of the entire batch of shares was transferred.
Trading totaled a transfer of 2.667 million shares through 4,040 transactions with a total value of 92.5 million lei (20.7 million euros). To realize the impact of Romgaz volumes and liquidity brought on the BSE, on Tuesday the liquidity of Bucharest capital market was 108.5 million lei (24.3 million euros). In other words, one company, namely Romgaz, made more than 85% of the liquidity of the total trading session on Tuesday.
Mediafax news agency also informs that GDR trading based on LSE Romgaz exceeded the shares transactions on BSE, with a total transfer of 2.852 million GDR. The price at which the London market was closed was10,4 dollars/GDR , by 12.43% above the price during the IPO.